ADP Supports Dollar

The dollar followed up on its gains after a strong ADP number this morning. Private payrolls rose 238K in December, which was above expectations and the most in a year. The Canadian dollar fell again to a 3 year low as speculations that the central bank may cut rates if its economy falters. The pound bucked the trend and rallied on better than expected home price data. In other news, the Russian ruble strengthened as crude prices rose and investors are betting that the coming Winter Olympics will support the currency. The offshore yuan rose to a record on speculations that China’s central bank will widen the onshore currency’s trading band. Treasuries are selling off and the 10-year looks to be testing the 3% ceiling again, while equities are mixed at the open.

Today's Events • U.K. home prices rose 1.9% in Q4 and 5.7% in 2013 as the economic recovery in the country continue to support the real estate market • German factory orders rose 2.1% last November from the prior month, another signal that Europe’s largest economy is poised to expand in 2014 • Euro-region retail sales increased 1.4% in November from the previous month, much higher than economists forecast of 0.1% rise • ADP private payrolls gained by 238K for December, the most in a year, indicating that nonfarm payroll numbers later this week may surprise to the upside as well • Romania cuts its benchmark interest rate to a record low of 3.75% from 4% after inflation slowed to its lowest rate in almost 2 years• Alibaba Group, China's largest e-commerce website, will ban the sale of Bitcoin and other virtual currencies after the country's central bank tightened regulations last December

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The dollar followed up on its gains after a strong ADP number this morning. Private payrolls rose 238K in December, which was above expectations and the most in a year. The Canadian dollar fell again to a 3 year low as speculations that the central bank may cut rates if its economy falters. The pound bucked the trend and rallied on better than expected home price data. In other news, the Russian ruble strengthened as crude prices rose and investors are betting that the coming Winter Olympics will support the currency. The offshore yuan rose to a record on speculations that China’s central bank will widen the onshore currency’s trading band. Treasuries are selling off and the 10-year looks to be testing the 3% ceiling again, while equities are mixed at the open.

Today's Events • U.K. home prices rose 1.9% in Q4 and 5.7% in 2013 as the economic recovery in the country continue to support the real estate market • German factory orders rose 2.1% last November from the prior month, another signal that Europe’s largest economy is poised to expand in 2014 • Euro-region retail sales increased 1.4% in November from the previous month, much higher than economists...Read More